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Katarina [22]
3 years ago
5

Borasco Corp. owns land with a fair market value of $200,000. Borasco purchased the land 10 years ago for $65,000 and owes a lia

bility of $50,000 as of August 2 of the current year. Alvo Corp. owns 100% of Borasco. Borasco is completely liquidated on August 2 of the current year, according to a plan adopted on June 18 of the current year. As a result, the land is transferred to Alvo in complete cancellation of Borasco's stock. What basis does Alvo have in the land it receives?
Business
1 answer:
sleet_krkn [62]3 years ago
5 0

Answer:

$65,000

Explanation:

Borasco was the person who purchased the land for $65,000 in which the land was later transferred to Alvo. Therefore no gain or loss is been recognized in this liquidation because it subsidiary is been liquidated by the parent which is why the basis of land is said to be carryover basis of $65,000 at the end of the transaction.

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WARRIOR [948]

Answer:

Option A is the cheapest.

Explanation:

Giving the following information:

The engineering department estimates costs of $450,000 for the first year. It is estimated that if process and plant alterations are made, the waste treatment cost will decline $43,000 each year. As an alternative, a specialized firm, Hydro-Clean, has offered a contract to process the waste liquids for 15 years for $225,000 per year.

We need to use the following formula and chose the smallest net present value:

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Option A:

Io= 407,000

Year cost= 43,000

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Option B:

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7 0
3 years ago
Why do you think it is important to choose the correct Business organization
dexar [7]

Not choosing the correct business organization to set up would become very costly for an individual hoping to start operations and this would result in business failure even before the business began operations.

3 0
3 years ago
Your insurance company can cancel your policy after 60 days for? a. a religious conversion b. being involved in a collision c. f
gregori [183]

Answer:

C)Failing to make payments

<h3>What is failure to make payments?</h3>
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6 0
2 years ago
During recessionary periods, bonds that were issued many years ago have a higher coupon rate than currently issued bonds. Theref
Mandarinka [93]

Answer:

YTM = 6.818%

Explanation:

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Ede4ka [16]

The three-term contingency becomes the four-term contingency if we add Punishers. Hence, option B is appropriate.

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